It's Your Money: Some Charter Schools Get Failing Grades

Students at almost half of all charter schools in Pennsylvania made significantly lower learning gains in math and reading than their traditional public school counterparts, according to a recent Stanford study.

Here is a transcript of the report that first aired Feb. 9, 2012, on WTAE Channel 4 Action News at 6 p.m.----------------------------------Inside Pennsylvania's first charter school, students hustle from class to class. Keystone Education Center CEO James Gentile sounds more like a coach than teacher.

Gentile: "We're on the sidelines cheering you on. In between rounds, we'll sew your cuts and towel you down. But you're in the ring. When the bell rings, it's your game to win or lose."

But the grades here are failing. Keystone has the lowest standardized test scores of any charter or public school in southwestern Pennsylvania. Just 15 percent of students met the benchmarks last year for reading and math skills.

Now, the state Ethics Commission is investigating.

Gentile: "They're accusing us of nepotism because my sons are all here, but they knew that going in."

Gentile's four sons are all employed at keystone.

Michael Gentile: "It's been a family-run operation since day one, and continues to be a family business."

The Gentile family's for-profit corporation owns the school and charges rent for classroom space.

Last year, public schools paid more than $3 million in tuition for students who attended here.

Parsons: "I mean, the numbers here are so low, it looks like kids are coming out of here with diplomas, but they don't know how to read and write."

Michael Gentile: "That's what it looks like on paper."

Parsons: "Is that the reality?"

Michael Gentile: "No, that's not the reality."

Gentile says Keystone's test scores are low because 40 percent of students are special needs.

But special needs students also come with twice the tuition reimbursement rate for Keystone -- $18,000 per student instead of $9,000.

Michael Gentile: "They get much more than a book value education. They're getting an education in life, and about attitude, and working hard and coming out with a positive attitude."

Ron Tomalis, Secretary of Education: "If they are not living up to their mandate, then they should be closed."

Parsons: "But that hasn't happened. You've got some that are not performing real well, as you just mentioned. Why does the state continue to fund those?"

Tomalis: "Well, charter schools are funded under the law."

And Pennsylvania's cyber charter schools get the lowest test scores of all. Fewer than 20 percent of them meet national standards for reading and math known as AYP (Adequate Yearly Progress).

James Hoover, CEO, PA Distance Learning: "Basically, we're a school of choice, so parents choose to come here or don't choose to come here."

But taxpayers don't get to choose. They're funding cyber charters like PA Distance Learning, based in Franklin Park, where the graduation rate is 15 percent.

Parsons: "Fewer than half of your students are proficient or advanced in math and reading. Less than half. That's a pretty low number."

Hoover: "Uh huh, and most of those kids weren't making AYP when they got here, and they were coming from failing school districts."

Parsons: "This is the system we have to determine how schools are doing. And under this system, your school's not doing so well."

Hoover: "Right. And I would agree with that."

Hoover argues that grading system is biased against cyber charters, where students can more easily drop in to try it out and then move on to another educational choice.

Hoover: "I just didn't think it was a valid assessment of the quality of a school."

For charters that don't meet the target, one local state lawmaker says the choice is clear.

Rep. Marc Gergely: "You have to really question the public monies that are going to them. If they're not working, they absolutely need to be shut down."

There are charter schools making the grade, like five Propel charter schools in Allegheny County. They all meet AYP year after year. But Tomalis says the poor-performing charters will continue to get tax-dollar funding as long as local school districts keep funding them.

Tomalis favors creation of a statewide agency with the authority to grant and revoke charters.

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